What is commodity market trading :
A commodity market is trades primary economy sector rather than manufactured .
In soft commodity include agricultural products such wheat, coffee ,cocoa and sugar .
And hard commodity include oil and gold
History of commodity market:
Commodity money and commodity market in crude early from are believed to have originated in summer between 4500 BC and 4001 BC. Sumerian first used claytokens sealed in a clay vessel, then clay writing to represent the amount for example the number of cow , to be delivered . These promises of time and date of delivery resemble future contract.
Commodity index funds:
A commodity index fund is a fund whose assets are invested in financial instruments based on. In just about every case the index is in fact a commodity future index. The first such index was the commodity research bureau (CRB) index, which began in 1958. It's construction made it unuseful as an investment index.
how trading system works:
Software for managing trading has been available for several decades in various configurations. This includes software as a service . So called energy trading risk management includes software such as open link and Gibbon.
I hope this article is helpful for everyone.
In next post we will discuss how to start investing in commodity market
Thanks you.
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